Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes AWR’s effective income tax rate (“ETR”) was 23.3% and 24.5% for the three months ended June 30, 2025 and 2024, respectively, and was 23.6% and 24.4% for the six months ended June 30, 2025 and 2024, respectively. GSWC’s ETR was 24.4% and 25.2% for the three months ended June 30, 2025 and 2024, respectively, and was 24.5% and 25.0% for the six months ended June 30, 2025 and 2024, respectively. The AWR and GSWC ETRs differed from the federal corporate statutory tax rate of 21% primarily due to (i) state taxes; (ii) permanent differences, including certain tax effects from stock compensation; (iii) the ongoing amortization of the excess deferred income tax liability; and (iv) differences between book and taxable income that are treated as flowed-through adjustments in accordance with regulatory requirements (principally from plant, rate-case, and compensation-related items). As regulated utilities, GSWC and BVES treat certain temporary differences as flowed-through to customers in computing their income tax expense consistent with the income tax method used in their CPUC-jurisdiction rate making. Flowed-through items either increase or decrease tax expense and the ETR. On July 4, 2025, the One Big Beautiful Bill Act (the “Act") was signed into federal law. Among other things, the Act extends or makes permanent several of the tax law changes enacted as part of the Tax Cuts and Jobs Act of 2017, and impacts the future of renewable energy tax credits enacted by the Inflation Reduction Act of 2022. Registrant is currently evaluating the provisions of the new tax law and the potential impact, if any, on its consolidated financial statements. Registrant currently does not expect the Act to have a material impact on its financial position or results of operations.
|